ENVALITH
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Heiwa Corporation

6412・Prime Market・Machinery

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株式会社平和 logo
Heiwa Corporation6412

Business

Heiwa Corporation is a comprehensive leisure company centered on the Amusement Machines Business, which develops, manufactures, and sells Pachinko Machines and Pachislot Machines, and the golf course operations business, which is the largest in Japan and encompasses PGM and Accordia Golf. The company comprises 32 consolidated subsidiaries and 1 affiliated company, and its business scale expanded significantly following the full consolidation of Accordia Golf Holdings as a wholly owned subsidiary in January 2025. Segment assets of the Golf Business reached ¥1,001,270 million, forming the core of the group's overall earnings base. In the Amusement Machines Business, the company maintains an in-house development and manufacturing structure, supplying both Pachinko and Pachislot models to the market.

Business Model

The Golf Business is a stable-type model that accumulates service revenue linked to the number of visitors and customer spending per visit, aiming to improve unit prices through revenue management and differentiated services. The Amusement Machines Business is a variable-type model based on development, manufacturing, and sales by machine model, investing ¥10,432 million in R&D expenses to maintain product competitiveness. The combination of these two businesses ensures revenue stability against economic cycles and regulatory changes.

Company Strengths

Through the integration of PGM and Accordia Golf, the company has built the largest golf course operation network in Japan. In FY2026 (ending March 2026), Golf Business net sales reached ¥230,624 million and operating profit reached ¥45,599 million (up 147.1% year on year), with segment assets of ¥1,001,270 million. The company has also continued to expand the number of golf courses through ongoing M&A.

The company has an in-house group structure covering everything from development to manufacturing and sales of Pachinko Machines and Pachislot Machines. It invests ¥10,432 million annually in R&D expenses, and has established an objective development process based on data and facts, along with proprietary evaluation indicators for game presentation. It is also working to reduce costs and maximize development ROI through parts commonization and reuse-oriented design.

In FY2026 (ending March 2026), cash flow from operating activities was ¥41,210 million (up 65.3% year on year), reflecting strong EBITDA-based cash generation, including depreciation expenses of ¥23,329 million. Despite bearing income tax payments of ¥19,555 million related to the Golf Business, the company secured ample cash and internally funded capital expenditures, debt repayment, and dividends.

ENVALITH's Perspective

In FY2026 (ending March 2026), consolidated results expanded significantly, with net sales of ¥258,107 million (up 76.9% year-on-year) and operating profit of ¥43,423 million (up 56.8% year-on-year). However, interest expenses surged from ¥1,928 million to ¥10,159 million due to the ¥510,000 million syndicated loan associated with the Accordia acquisition. Profit attributable to owners of parent decreased to ¥11,670 million (down 10.7% year-on-year). The high level of financial leverage—with net interest-bearing debt of ¥572,155 million and a net interest-bearing debt ratio of 230%—continues to warrant close monitoring as a constraint on the quality of earnings.

In FY2026 (ending March 2026), sales in the Amusement Machines Business fell sharply to ¥27,482 million (down 39.6% year-on-year), with operating profit plunging to ¥712 million (down 94.0% year-on-year). Unit sales of Pachinko Machines totaled 32 thousand units (down 22 thousand units year-on-year), while Pachislot Machines totaled 31 thousand units (down 19 thousand units year-on-year), both showing substantial declines. Amid continuing external factors such as the ongoing decline in the number of pachinko halls and the population of gaming participants, the improvement in utilization of smart pachinko machines has been delayed, leaving high uncertainty regarding the recovery of profitability in the Amusement Machines Business. On a non-consolidated basis, the company posted net sales of ¥27,382 million, an operating loss of ¥2,043 million, and a net loss of ¥5,120 million, falling into the red on a standalone basis.

For FY2027 (ending March 2027), the company forecasts net sales of ¥285,900 million (up 10.8% year-on-year), operating profit of ¥52,000 million (up 19.8% year-on-year), and profit attributable to owners of parent of ¥20,300 million (up 73.9% year-on-year). The main drivers of the projected profit growth are the steady trend in visitor numbers and unit prices in the Golf Business, along with the new contribution from PGM Hotel Resort Okinawa (scheduled to have its grand opening in July 2026). On the other hand, as an external factor, the phase of rising interest rates continues, including the Bank of Japan's policy shift such as the lifting of negative interest rates, leaving a risk of increased borrowing interest expenses. The risk of breaching financial covenants also continues to warrant monitoring. The interest coverage ratio has fallen sharply from 51.9x in FY2022 (ended March 2022) to 4.8x in FY2026 (ending March 2026), clearly indicating a decline in financial flexibility.

Growth Strategy

Scaling and enhancing value-added offerings in the Golf Business, achieving the Medium-Term Management Plan 2027, and transitioning to a holding company structure

Through full-year consolidation of Accordia Golf Holdings, acquired in January 2025, the Golf Business achieved net sales of ¥230,624 million (up 129.8% year on year) and operating profit of ¥45,599 million (up 147.1% year on year) in FY2026 (ending March 2026). The Company continues to pursue group synergy creation, enhanced revenue management, and capture of inbound demand.

The Company's group's first luxury resort hotel, "PGM Hotel Resort Okinawa," is scheduled to have its grand opening on July 3, 2026. It aims to capture a high-value-added customer segment as a new revenue source for the Golf Business. As of the end of FY2026 (ending March 2026), property, plant and equipment increased by ¥22,137 million due to progress on construction work.

The Company is strengthening differentiation from competitors through the expansion of Differentiated Services such as Night Golf and Cool Cart (golf carts equipped with fans), the introduction of the "Jikadori" preferential direct-booking program on the official website, the launch of the withGolf service, and the rollout of the GRAND (High-Grade Brand) at six locations. Steady growth in visitor numbers and customer spend contributed to results in FY2026 (ending March 2026).

In March 2026, the Company entered into a share transfer agreement for "Sebanomori Kitakyushu Golf Course," with operations scheduled to commence on June 1, 2026. The Company will continue its policy of allocating retained earnings to golf course M&A, further expanding its domestic industry-leading network.

With an effective date of October 1, 2026, the Company will transfer its Amusement Machines Business to a newly established company (Heiwa Corporation) through a simplified incorporation-type company split, and the Company itself will change its trade name to "Heiwa Holdings Corporation." This separates group-wide strategic functions from the execution functions of each business, enabling faster decision-making and optimal allocation of management resources. The impact on consolidated results is minor.

For FY2028 (ending March 2028), the final year of the plan, targets are net sales of ¥327.0 billion, operating profit of ¥73.0 billion, EBITDA of ¥106.0 billion, ROE of 11.3%, and a net interest-bearing debt/EBITDA ratio of 4.7x. For FY2027 (ending March 2027), the Company forecasts net sales of ¥285,900 million, operating profit of ¥52,000 million, and net profit of ¥20,300 million, and is working to make progress toward achieving the plan.

Last updated: July 19, 2026